Joust taps new Australian crowdfunding rules in bid to raise $2 million
Joust, an Adelaide based fintech that brings competitive tension to the home loan market by linking borrowers directly with over 20 lenders who compete against each other in real-time, has launched an equity crowdfunding campaign to raise $2 million. The Joust platform brings disruption to the $1.7 trillion home loan mortgage market where $2 billion in fees are paid to mortgage brokers annually. Described as a “consumer hero” fintech company – as Joust places the power back in consumers’ hands – Joust uses technology to provide transparency, competitive tension and superior customer outcomes to the home loan market. Key points: • Aiming to disrupt the mortgage broker channel under siege […]
$2bn of broker commissions in fintech’s crosshairs
An Australian fintech has set its sights on disrupting the dominance of the mortgage broking industry by appealing to the banks who it claims are keen to reduce the $2 billion they spend on broker commissions. Adelaide-based online home loan platform Joust has distanced itself from its competitors in the fintech space, which has seen a flurry of mortgage disruptors in recent years. “Joust is not a comparison site with a myriad of static rates. It is also not an online broker or aggregator. We are a revolutionary marketplace model for home loan customers and lenders,” Joust co-founder and CEO Mark Bevan said. Joust is leveraging the negative press that […]
Fintech provided with funding facility
A fintech lender has announced it will be able to fund up to $50million in loans after it was provided a funding facility by a major lender. Through a special purpose vehicle from NAB, GetCapital will now be able to fund more loans to small and medium sized businesses (SMEs) across Australia. GetCapital specialises in the fast-growing non-bank SME lending space, offering a range of products that include flexible business loans, equipment finance and trade finance. The new landmark funding facility follows unprecedented growth for GetCapital, which recently exceeded $250m of total loans written. The company hopes this will help towards reaching its goal of $1billion in funded loans by […]
Bank of Queensland bans using home equity loans for crypto
Lenders are banning property buyers from using home equity to buy cryptocurrencies because of regulatory fears and increased risk from volatile trading conditions. Bank of Queensland is the latest to ban any drawdown or lines of credit from loans to be used for leveraged purchases, trading or other use of the largely unregulated global digital currency. Other lenders are discouraging borrowers and mortgage brokers, who act as intermediaries between lenders and borrowers, from using real estate to fund high-risk investments. Leveraged currency plays can magnify gains from a successful investment decision but worsen losses. Lenders are asking questions and monitoring borrowers’ accounts to alert them to crypto-trades, purchases, or offshore […]
The fintech transformation
According to one fintech expert, brokers could soon be replaced by smart speakers. But will customers embrace such a technological leap? Until the early 2000s, the process of booking a holiday involved trips to multiple travel agencies, hours thumbing through glossy brochures, and more sit-down meetings than the average mortgage currently requires. Today it’s a task that can be completed on a mobile phone during a coffee break. There are many reasons why the travel industry experienced such a shift, from the lure of competitive prices to the convenience of consumers becoming their own armchair agents. People simply wanted to take more control. Seeing the same demands echo throughout the […]
Neo-lender Wisr announces record loan growth
Neo-lender Wisr more than doubled personal loan originations in the second-half of the financial year after a strong Q4, the company announced today. Loan origination value in H2FY18 rose by 136% on the previous six months, whilst the number of new Wisr customers climbed 118% during the same period. The result follows the company’s largest single quarter in loan growth – with a 66% increase in loan origination value and 40% in loan origination volume during Q4 compared to Q3FY18. It is the second successive quarter that Wisr has achieved record loan origination growth. According to the 2017 Asia Pacific Alternative Finance Industry Report by Cambridge University and Monash University, […]
Australia needs state-backed SME investment: ombudsman
The small business ombudsman has released a long-awaited report on SME access to capital, and issued a range of recommendations, including the establishment of government-backed SME investment fund. Releasing the Affordable Capital for SME Growth report, Kate Carnell, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), said that Australian lenders consider SME loans to be high-risk, which has unwanted flow-on effects. “In Australia, lenders consider SMEs high-risk and offer capital with restrictive terms and conditions, at high interest rates and demand bricks and mortar as security – which is usually the family home,” Ms Carnell said. “Unfortunately, the unintended consequences of the financial services royal commission for SMEs might […]
Non-banks are the future of banking
The future of banking is in the hands of non-banks, says specialist lender Liberty. Non-banks, by nature, are “active, nimble, innovative and relevant”, allowing them to lead the competition, rather than be threatened by big banks. Non-banks provide a variety of solutions such as home loans, car loans, personal loans and business loans, as well as custom lending for those that need it. But as the financial world welcomes more and more technology, and increased regulation drives up costs, it leaves many to wonder how non-banks will respond to these changes. Asked about how non-banks will adapt to the future, group sales manager at Liberty, John Mohnacheff, laughed: “How are […]
